On November 15, the IRS released inflation-adjusted tables for 2019 reflecting any increases in the flexible spending arrangements (FSAs) deferral limit and excludable transportation fringes, among other changes. These are commonly referred to as cost of living adjustments (COLAs) [Rev. Proc. 2018-57, 11-15-18].
For plan years beginning in 2019, the dollar limitation for voluntary employee salary reductions for contributions to health FSAs increases to $2,700 (from $2,650 in 2018). For 2019, the amounts that may be excluded from gross income for employer-provided qualified transportation fringe benefits and qualified parking have both increased to $265 per month (from $260 in 2018).
For more information, see the APA Compliance Update, IRS Announces 2019 COLAs for Transportation Fringes, FSA Deferrals, Foreign Earned Income Exclusion, and more. Compliance updates are emailed to APA members and are also available on the Compliance Updates web page.
To learn more about federal and state laws, regulations, and information to keep your company's payroll operations in compliance, check out Payroll Source Plus!
